Why would this be of no consequence?
But, it's not the case. US Firms manufacturing in Mexico and immediately shipping back to the US...DO NOT count in the current account deficit.
Even though it's a practice that is draining the country of capital and jobs.
Are you sure? Can you link a source for that?
I've been of the belief that there was in the past, and maybe still, a large movement of parts from the US to Mexico for final assembly, then shipment back into the US for sale. And I've thought those items were counted both as exports to Mexico and then imports back into the US.
If you are correct, then the US trade deficit with Mexico is far more than the stated $60 billion or so at present.
Thanks for the clarification.
“”Isn’t this because of the maquiladoras? “
Why would this be of no consequence?
But, it’s not the case. US Firms manufacturing in Mexico and immediately shipping back to the US...DO NOT count in the current account deficit.
Even though it’s a practice that is draining the country of capital and jobs.”
AND giving us substandard products.